​There are three rates of Value Added Taxes:

The standard rate of VAT is the default rate as this is the VAT rate that's normally charged on most products and services within the UK.

Reduced rates may apply to items such as fuel, power, hygiene products and others. Zero rates may apply to certain foods, newspapers and services such as public transportation.

The VAT which you as the reseller add to the sale price of the product or service is known as your 'output tax'.

The VAT which you pay when purchasing products or services for your own business is known as your 'input tax'.

You must fill in a VAT Return statement quarterly and submit it to HM Revenue & Customs (HMRC): www.gov.uk​

When filling in your VAT return, you must disclose the VAT you have charged on your sales to your customers during that period of time. (Output Tax)

You should also disclose any VAT that you have paid on products or services used for your own business purposes as well. (Input Tax)

If the amount of the VAT you've charged and collected from your customers (output tax) is greater than the amount of VAT you've paid on products and services for your business (input tax) then you’ll only need to send in the difference to HMRC with your VAT Return.

However, if your input tax, (the VAT you have paid for products or services for your business), is greater than the output tax, (the VAT you have charged and collected from your customers), then you must claim a VAT repayment on your VAT Return form.​

If you have specific issues that need to be addressed then you can always visit the HM Revenue & Customs (HMRC) website and/or contact the VAT helpline. You can find contact details for the VAT helpline on the HMRC website: www.gov.uk

You must set up a record keeping system to keep track of your VAT activities which include all output tax collected and all input tax paid on.

When starting a new business, registering an existing business or buying an existing business you must fill out and complete a VAT 1 form. Most applications for VAT registration can be filled out and completed online.​

​How to register for VAT:

To register for VAT you can visit the HM Revenue & Customs (HMRC) website and download the VAT 1 form or fill out and complete the VAT 1 form online.